The report tracks 15 buildings in the north DTC with a total of 3.5 million sf. The vacancy rate is higher than it has ever been, the report shows.
But the record-breaking vacancy rate isn't due to the softening economy, at least not completely, says Doug Wulf, an office broker at Fuller and Co. Rather, a number of companies such as Lucent/Avaya, software giant J.D. Edwards, and the Invesco family of mutual funds, vacated big blocks of office space to move into their own build-to-suit campuses, Wolf says.
In addition, Chevron Texaco is vacating about 126,000 sf, as it is basically shutting down its Denver office after Chevron and Texaco moved last year.
Wulf says there are two schools of thoughts on the impact of T-Rex, the $1.7 billion widening and adding light rail along I-25. He says some say the north DTC will benefit, as it is a good compromise location if a company draws from a diverse geographic area. Others think companies will flee the north DTC to move to parks south or west of T-Rex in order to avoid the congestion.
So far, though, there's been few moves predicated on T-Rex, he says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
